Deutsche Bank celebrates 40 years in Malaysia; positive about financial market development
Deutsche Bank today announced that it celebrated 40 years of continued on-the-ground presence in Malaysia with a gala dinner in Kuala Lumpur on Tuesday evening, 22 May, for over 300 guests including dignitaries, corporate and institutional clients, and staff.
Deutsche Bank operates across a number of business lines and entities in various jurisdictions including sales and trading activity across debt, credit, foreign exchange, commodities and equities; transaction banking services such as cash management, trade finance and custody; and corporate advisory such as merger and acquisitions. Deutsche Bank through its locally licensed entity, Deutsche Bank Malaysia Berhad, employs over 130 staff in Malaysia. Deutsche Bank Malaysia Berhad is one of the longest serving foreign banks in Malaysia and importantly, has stayed committed to the country’s financial markets through all business cycles.
Raymond Yeoh, Chief Country Officer for Deutsche Bank Malaysia Berhad said, “Malaysia was the first country in which Deutsche Bank opened an office in South-East Asia, and the good experience we have had in Malaysia meant that it became a springboard for our expansion in the region.”
“We are very proud to have been an active participant in the financial markets for the majority of years since independence,” he said.
While at first Deutsche Bank Malaysia Berhad’s clients were German or multinational companies doing business in Malaysia, the percentage of clients that the Bank now serves is overwhelmingly Malaysian. These local clients range from local financial institutions, government-linked corporations and large and medium-sized companies.
The products and services that Deutsche Bank Malaysia Berhad offers cover areas such as custodial services for asset managers, cash management and trade finance solutions, capital raisings, and Global Markets sales and trading activities including structured products and other instruments - covering a wide range of asset classes - offered for hedging and investment purposes in accordance with local regulatory requirements.
“Deutsche Bank views itself as a key partner to Malaysia’s leading financial institutions and corporations. Our long history of on-the-ground service has differentiated the Bank as a leading capital raiser for Malaysian corporations, a specialized product manufacturer, and an expert in research, sales and trading,” said Mr Yeoh.
In 2006, Deutsche Bank was the leading arranger of foreign currency bonds for Malaysian corporations following the $US 1 billion transaction it raised for Penerbangan Malaysia Berhad. It also featured significantly in equity league tables following the MYR 1.1 billion it raised for Resorts World via a convertible bond. In terms of merger and acquisition activity, Deutsche Bank played a lead role in Telekom Malaysia’s $US 178.5 million purchase of a 49% stake in Indian company, Spice Telecommunications.
Deutsche Bank Malaysia Berhad product manufacturing capability has seen the Bank work with local regulators in order to innovate across a range of structured products suitable for financial institutions and sophisticated investors. Such products include structured investments, with returns linked to asset classes such as Asia Pacific equities, Asian interest rate markets, hedge funds and commodities. Last month Deutsche Bank Malaysia Berhad also became the first foreign bank to launch warrants in Malaysia.
As a leading research house, Deutsche Bank Malaysia Berhad has had an overweight on the Malaysian market and marketed the virtues of the local market heavily to foreign and institutional investors early this year. This has seen the Bank facilitate a good proportion of international flows into the local stock market. Deutsche Bank Malaysia Berhad’s foreign exchange expertise has also seen the Bank help a range of corporations manage their currency exposures in the lead-up to, and following, the de-pegging of the Ringgit.
“Deutsche Bank Malaysia Berhad, through its local knowledge of the market, has been well placed to work with Malaysian companies in a liberalizing regulatory environment,” said Mr Yeoh.
“Malaysia today – the economic growth we see, the continued emergence onto the world stage of many local corporations, the robustness of the financial system, and the further opening up of key sectors to foreign investment – is testament to the progressive policies implemented by Bank Negara and local regulators over the last five years.”
With regard to the Malaysian economy, Deutsche Bank is confident that Malaysia will continue to grow at about its potential growth rate of 5.5% - 6.0% over the next few years. The Bank also believes that recent fiscal expansion is appropriate and considered, and that the opening up of foreign direct investment in property and services is a positive move. In particular Deutsche Bank believes that Malaysia is one country in Asia that is very well positioned to directly benefit from China’s growth.
“Malaysia’s strength in key natural resources such as palm oil, rubber and the important oil and gas industry should be a key competitive advantage for Malaysia in the future,” said Mr Yeoh.
“What’s particularly encouraging to us is the way key companies in the natural resources sector are looking to move up the value chain. We are playing an active role in helping such organizations raise capital, both in the public and private domain, in order for these companies to expand further.”
For further information, please contact:
Jason Collins (65) 6423 8418
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 73,114 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.